Banks.

The colony being no longer allowed to issue bank projects revived. As a concession, £76,500 were allowed in 1733 for public expenses, and the year 1741 was fixed as a terminus for all outstanding issues. This year (1733) was one of great distress throughout New England. Trade was stagnant and “ money scarce.” Rhode Island issued £100,000. The Boston merchants agreed not to receive them, and themselves issued £110,000, redeemable in silver at 19s. per oz., one tenth of the issue each year for ten years, without reissue. Some of them broke the engagement and received the Rhode Island bills, and all the notes flowed in together. Silver rose to 27s. per oz. The merchants' notes were hoarded.

In 1734 Governor Belcher recommended the withdrawal of paper money and bounties on hemp and naval stores, so as to turn the balance of trade.

In 1737 “new tenor” bills were issued, to circulate at the rate of one for three of the old. Felt quotes an act showing that a system of counterfeiting had grown up by which a counterfeit part was pasted on a mutilated bill, raising its denomination. £170,000 of outstanding bills must, by law, be redeemed before 1742.